diff --git a/testing/src/test/resources/policy/late_function_binding/config.yaml b/testing/src/test/resources/policy/late_function_binding/config.yaml
new file mode 100644
index 000000000..423db293b
--- /dev/null
+++ b/testing/src/test/resources/policy/late_function_binding/config.yaml
@@ -0,0 +1,34 @@
+# Copyright 2025 Google LLC
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#    https://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+name: "late_function_binding"
+functions:
+  - name: "foo"
+    overloads:
+      - id: 'foo_id'
+        args:
+          - type_name: 'string'
+        return:
+          type_name: 'bool'
+  - name: "bar"
+    overloads:
+      - id: 'bar_id'
+        args:
+          - type_name: 'string'
+        return:
+          type_name: 'bool'
+variables:
+  - name: "a"
+    type:
+      type_name: 'string'
\ No newline at end of file
diff --git a/testing/src/test/resources/policy/late_function_binding/policy.yaml b/testing/src/test/resources/policy/late_function_binding/policy.yaml
new file mode 100644
index 000000000..15cc503e9
--- /dev/null
+++ b/testing/src/test/resources/policy/late_function_binding/policy.yaml
@@ -0,0 +1,20 @@
+# Copyright 2025 Google LLC
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#    https://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+name: "late_function_binding"
+rule:
+  match:
+  - condition: foo(a) || bar(a)
+    output: "true"
+  - output: "false"
diff --git a/testing/src/test/resources/policy/late_function_binding/tests.yaml b/testing/src/test/resources/policy/late_function_binding/tests.yaml
new file mode 100644
index 000000000..63cd3f092
--- /dev/null
+++ b/testing/src/test/resources/policy/late_function_binding/tests.yaml
@@ -0,0 +1,28 @@
+# Copyright 2025 Google LLC
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#    https://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+description: "Tests for late function binding."
+section:
+  - name: "late_function_binding"
+    tests:
+    - name: "true_by_default"
+      input:
+        a:
+          value: "foo"
+      output: "true"
+    - name: "false_by_default"
+      input:
+        a:
+          value: "baz"
+      output: "false"
\ No newline at end of file